Question

A(n) ________ is a carefully predetermined cost that is usually expressed on a per unit basis.
A) allocated cost
B) applied cost
C) standard cost
D) flexible cost

Answer 1

The correct answer is Option C "Standard cost"

The Standard Cost refers to the predetermined cost which is calculated to know the anticipated cost of producing a goods or service. To compute standard costs we identify the direct costs and indirect costs that will affect the cost of production and add these costs to arrive at total standard costs and then we divide it by number of units produced to arrive at per unit standard costs

The standard cost is usually compared with the actual costs to determine the deviations.